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2015 (5) TMI 632 - HC - VAT and Sales TaxDetention of goods - first respondent erroneously treated the transfer as inter state sale without even conducting any enquiry or appreciating the contents of the documents produced to substantiate their claim - Levy of compounding fees - Held that:- Court is of the view that the petitioner cannot be left without any remedy, as the petitioner states that the goods are not liable for detention or for levy of any compounding fee. The petitioner would state that there are sufficient documents to show that the transaction is not in violation of the provisions of the TNVAT Act, more particularly, when the consignor and the consignee have furnished the TIN numbers and the goods were also accompanied by proper records. - Court is of the view that the petitioner should be granted an opportunity to contest the matter on merits. However, in order to safeguard the interest of the Revenue, the petitioner should be directed to remit the tax demanded. - writ petition is disposed of by directing the petitioner to pay the tax of ₹ 75,222/- within a period of three weeks from the date of receipt of a copy of this order and on such payment, the respondents are directed to release the goods. Insofar as levy of compounding fee is concerned, it is open to the petitioner to file revision under Section 54 of the Act within a period of three weeks after the goods are released - Decided conditionally in favour of assessee.
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